Score: 5/5 (67 votes)

For example, if you budget for a monthly housing payment of $2,500 with two percent annually going to taxes and insurance, assuming the current 30-year mortgage rate is 4%, the math “worked backwards” reveals a **maximum home purchase price of $385,000**.

If you make $3,000 a month ($36,000 a year), your DTI with an FHA loan should be no more than $1,290 ($3,000 x 0.43) — which means you can afford a house with a monthly payment that is **no more than $900** ($3,000 x 0.31). FHA loans typically allow for a lower down payment and credit score if certain requirements are met.

If you know your monthly mortgage payment is project to be $2,500 a month, then you need to divide that by . 28 to get the minimum gross monthly income you need to make to afford the payment, which is $8,928. This equates to earning **$107,136 a year before taxes**.

So, if your target mortgage payment is $2,000 per month and you have consumer debts of $300 per month, **you will need approximately $6,388 gross monthly income to offset your housing expenses and consumer obligations.**

On a $300,000 mortgage with a 3% APR, you'd pay **$2,071.74 per month on a 15-year loan** and $1,264.81 on a 30-year loan, not including escrow. Escrow costs vary depending on your home's location, insurer, and other details. Credible is here to help with your pre-approval.

Monthly payments for a $250,000 mortgage

On a $250,000 fixed-rate mortgage with an annual percentage rate (APR) of 4%, you'd pay **$1,193.54 per month for a 30-year term** or $1,849.22 for a 15-year one.

Monthly payments on a $400,000 mortgage

At a 4% fixed interest rate, your monthly mortgage payment on a 30-year mortgage might total **$1,909.66 a month**, while a 15-year might cost $2,958.75 a month.

To purchase a $300K house, you may need to make **between $50,000 and $74,500 a year**. This is a rule of thumb, and the specific salary will vary depending on your credit score, debt-to-income ratio, the type of home loan, loan term, and mortgage rate.

Buying a rental property with only a $20,000 down payment may sound impossible, but **it can be very doable**. On Roofstock there are single-family and small multifamily investment properties available that require an initial investment (i.e., down payment + closing costs + immediate repair costs) of $20,000 or less.

On a $70,000 income, you'll likely be able to afford a home that costs **$280,000–380,000**. The exact amount will depend on how much debt you have and where you live — as well as the type of home loan you get.

According to Brown, you should spend **between 28% to 36% of your take-home income** on your housing payment. If you make $70,000 a year, your monthly take-home pay, including tax deductions, will be approximately $4,530.

For the couple making $80,000 per year, **the Rule of 28 limits their monthly mortgage payments to $1,866**. Ideally, you have a down payment of at least 10%, and up to 20%, of your future home's purchase price. Add that amount to your maximum mortgage amount, and you have a good idea of the most you can spend on a home.

I make $65,000 a year. How much house can I afford? You can afford a **$195,000 house**.

You can afford a **$225,000 house**.

For example, if you make a $55,600 downpayment on a $400K house and qualify for a 4.25% 30-year mortgage, your **minimum monthly income should be $8,178** (assuming that less than $1,000 per month is used to pay down other debts).

If you're getting a mortgage, a smart way to buy a house is to save up **at least 25% of its sale price** in cash to cover a down payment, closing costs and moving fees. So if you buy a home for $250,000, you might pay more than $60,000 to cover all of the different buying expenses.

If the home price is $500,000, a **20%** down payment is equal to $100,000, resulting in a total mortgage amount of $400,000 ($500,000 - $100,000). The average down payment in the US is about 6% of the home value.

What income is required for a 200k mortgage? To be approved for a $200,000 mortgage with a minimum down payment of 3.5 percent, you will need an approximate income of **$62,000 annually**. (This is an estimated example.)

The usual rule of thumb is that you can afford a mortgage two to 2.5 times your annual income. That's a **$120,000 to $150,000** mortgage at $60,000.

If you're debt-free, your monthly housing payment can go **as high as $1,500** on an income of $50,000 per year.

How Much Income Do I Need for a 350k Mortgage? You need to make **$129,511 a year** to afford a 350k mortgage. We base the income you need on a 350k mortgage on a payment that is 24% of your monthly income. In your case, your monthly income should be about $10,793.

When attempting to determine how much mortgage you can afford, a general guideline is to multiply your income by at least 2.5 or 3 to get an idea of the maximum housing price you can afford. If you earn approximately $100,000, the maximum price you would be able to afford would be **roughly $300,000**.

Monthly payments on a $500,000 mortgage

At a 4% fixed interest rate, your monthly mortgage payment on a 30-year mortgage might total **$2,387.08 a month**, while a 15-year might cost $3,698.44 a month.

Monthly payments for a $450,000 mortgage

With a $450,000 mortgage and an APR of 3%, you'd pay **$3,107.62 per month for a 15-year loan and $1,897.22 for a 30-year loan**. Keep in mind, these amounts only include principal and interest. In many cases, your monthly payment will also include other expenses, too.